Borrow And Spend

The General Assembly yesterday authorized immediately borrowing $100 million for alternative fuels, introduced a pre-filed bill to set up local authorities to borrow money off the state's books for roads and bridges, and on Tuesday the public pension Blue Ribbon Commission will hear testimony about borrowing hundreds of millions more to bail out the state employee benefit plans.

Thank your grandchildren.

I Can't Get No Small Business Tax Breaks

A bipartisan collection of 21 House members today pre-filed a bill that can best be described as the "We still won't cut business taxes across the board so, here, apply for this unfunded small business tax credit and let's see what happens Act of 2008."

New Jersey Has Casinos And Crushing Debt

New Jersey isn't taking time off from buying votes with taxpayer money to consider the long-term costs. Why should we?

Like a cash-strapped shopaholic reaching for a credit card before payday, New Jersey is planning to borrow $2 billion to cover expenses over the next few months – including those record-high property tax rebates.

But given the state's financial situation, some wonder if it's a wise move.


The state already owes an estimated $29.7 billion to creditors. Debt service alone is costing taxpayers upward of $2.5 billion a year. And employee pension funds are at least $25 billion behind where they should be to cover projected future costs.

Overall, money is so tight that Governor Corzine is looking at selling or leasing state assets, such as toll roads and the lottery, to raise revenues.

Like many states at the beginning of a fiscal year, New Jersey is short on cash to pay its bills. But New Jersey has a $2.2 billion expense coming up this year that is unusual: property tax rebate checks.

By the numbers
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Total debt: $29.7 billion

Annual debt costs: $2.5 billion

Expected short-term loan: $2 billion

Cost of tax rebates: $2.2 billion

The checks – which average $1,200 for most homeowners – are timed to be in mailboxes this fall before the upcoming legislative elections.

Illinois Says "Thanks For Playing!"

One element of the Peabody Coal giveaway no one is talking about in Kentucky right now is the fact that as soon as we pass our incentive package we will likely be outbid by Illinois.

The most interesting part of that development will be the role extreme lefty U.S. Senator Barack Obama plays in putting the deal together.

Nominating A Republican In 2008

Since the presidential nomination process belongs to people who are registered as Republicans, I say we drop Sen. John McCain from all future debates and replace him with John Cox.

McCain is just sucking up valuable oxygen in the race right now and should move out to make room for someone who is better on the issues.

Maybe Aurora, Illinois Deserves To Get Smacked Around A Little Bit

They have a casino, but they keep raising taxes there. The same thing will happen in Kentucky if we open casinos.

The fact is there is no sentiment in the General Assembly to pass casinos. It just will not happen. Even if you want a casino (or an abortion clinic) in your back yard, you have to agree Steve Beshear is wasting our time going on about this nonsense. It won't fund anything because it won't pass.

Isn't it time we addressed one of the many other issues facing Kentucky and whoever will serve as governor the next four years?

Trouble In Coal Paradise?

I've had a heck of a time getting much back up for this story -- and even got an iffy denial from the National Mining Association -- but it seems China's tens of billions worth of coal-to-liquid projects may be in jeopardy.

We might want to get some more info on this before we start writing big checks.

Deaniacs Want You To Call Governor Fletcher

Just got an e-mail from Democracy For America, the old Dean For America group without Mad Howard, asking me to call Governor Fletcher and urge him to call President Bush and demand that he expand welfare to give government health insurance to middle-class kids.

What can you do? Let's face it; President Bush isn't going to take your call. On the other hand, when the governor of a state calls, even Bush will listen.

Call Governor Fletcher right now and demand that Kentucky stands up to President Bush's anti-children campaign.

Governor Ernie Fletcher
502 564-2611
Here's what you can say:

"President Bush's new rules which reduce the availability of the Children's Health Insurance Program for uninsured kids must be repealed. Governor Fletcher must call President Bush today and demand a complete rollback of the new rules. Can I count on the governor to stand up for our kids?"

Before you get all lathered up and make that call, read this from National Review.

The Democrats’ SCHIP outrage, while perhaps politically savvy (who could oppose insuring children?), has nothing to do with the real problem of those poor and uninsured. There are several ways the government could make insurance affordable — President Bush has proposed a generous health-insurance tax deduction, and others have proposed a repeal or circumvention of burdensome state insurance mandates that massively inflate prices.

But the Democrats’ expansion of SCHIP into the middle class is not a solution to any existing problem. It is welfare for those already faring well, and with an eye toward expanding government in the future.

The Presidential race next year will be about the direction we go in on health insurance, but the Kentucky gubernatorial race should be as well. We need to hear more from both candidates on this.

This Is How Bad It Has Gotten

The ridiculous alternative "energy" giveaway bill is expected to be wildly endorsed by members of both parties in the House tomorrow.

Rep. Tom Riner (D-Louisville) has filed amendments that place the following language in the bill not just once, but twice:

The General Assembly further finds that the energy facilities located in Kentucky as a result of this subchapter have a moral obligation to include among their first priorities and principles of operation the health and welfare of their employees and the citizens of the Commonwealth and the protection of the environment, including the land, air, and water.

The only thing left to do now is to establish penalties for business owners for violating their "moral obligation" to the citizens of the Commonwealth or for keeping their obligations to the land, air, and water as only a secondary priority.

What a weird day it has been watching our legislators put this bill together. Not one of our brighter moments.

Day Trading With Kentucky's Nest Egg

Watching Kentucky's legislators rush to back questionable energy theories with hard (borrowed) cash reminds me of watching wild-eyed amateur stock market traders.

It takes a special brand of moron to blow his family's savings on a financial offering when he really thinks he is the first person in the world to see a particular opportunity. When all his money is gone, he realizes he was just another sucker.

The eagerness in Frankfort to be the first state to go all in on "energy independence" and "alternative fuel production" reminds me a lot of that.

Contribute To Stumbo's "Who's My Daddy?" Fund!

Reluctant child support payer Greg Stumbo has filed papers to explore how badly he wants to get his butt kicked in a race for the United States Senate next year.

He even has a website.

One interesting thing on the exploratory committee website is his policy on refunds, which would become particularly applicable should Stumbo decide not to run:

Once a contribution has been submitted, it is the policy of Stumbo2008.com to not offer Refunds.

If he doesn't run, one can't help wondering what he plans on doing with that money.

Naked Money Grab: Incentive Scam Is A Waste

Energy plan supporters who claimed the scheme at the heart of this weeks special session wasn't a government giveaway now need only look at the appropriation on page 106 of the bill in the amount of $5,319,500 from the General Fund.

That is for the first year interest payment on the $100 million bonding appropriated on page 105 of the bill for the purpose of giving companies cash in advance of the start of their projects.

What is that if not corporate welfare? In the mountains of eastern Kentucky, they call welfare "crazy checks." Maybe we need to start referring to HB 1 as the Coal Company Crazy Check Act of 2007.

It wouldn't be quite so bad if we weren't borrowing the money before we give it away. But there is no justification for a fiscal conservative vote in favor of this mess. And since the powers-that-be have put out the word that only one technical correction to the bill will be allowed -- but no amendments -- the responsible thing to do is to vote against the bill.

Herald Leader Goes Daily Kos On Dick Cheney

Part of the fun of writing a blog is that you can take someone's comments out of context and beat him over the head with them.

The Lexington Herald Leader knows the feeling. The online version's editorial page this morning reprinted Nicholas Kristof's column from yesterday's New York Times.

It starts like this:

Saving energy doesn't have to mean shivering in the dark.

Vice President Dick Cheney once scoffed that energy conservation can be a "personal virtue" but is no basis for an energy policy.

Growing evidence suggests he had it exactly wrong.

Actually, growing evidence suggests the "professional" media is using the blogger's trick to slap a political enemy.

Here is what Cheney actually said:

Now, conservation is an important part of the total effort. But to speak exclusively of conservation is to duck the tough issues. Conservation may be a sign of personal virtue, but it is not a sufficient basis all by itself for sound, comprehensive energy policy. We also have to produce more. The American people have worked very hard to get where they are, and the hardest working are the least likely to go around squandering energy or anything else that costs money. Our strategy will recognize that the present crisis does not represent a failing of the American people.

And now Kentucky's General Assembly has worked up an energy policy compromise measure that is worse than the first two proposals. Tax credits are one thing, but now we are bonding $100 million to give away in advance of any energy production or job creation. Creating jobs is a good way to sell any kind of economic development project, but the fine print in the bill reveals we will be funding many of those jobs with borrowed government money.

Worley Returns To Frankfort Millions Lighter

Sen. Ed Worley (D-Richmond), one the most outspoken casino gambling supporters in the legislature, settled a fraud lawsuit earlier this summer for what is believed to be at least two million dollars.

If you see him this week, you might want to offer to buy him lunch. But don't get mixed up in any land deals with him.

I Have An Idea For The Next GOP Photo-Shopper

How about Steve Beshear in an adult diaper and a rain coat, headed to the Kentucky Casino?

Central Kentucky Can't Afford For Lexington To Be A Sanctuary City

Now that Lexington police are practicing catch-and-release with illegal aliens who break local laws, the illegal immigration issue will soon take on a new dimension that will impact all of central Kentucky.

As word gets out that Lexington is a sanctuary for undocumented criminals -- and no, I'm not talking about farm workers without visas -- the problem will grow much worse than illegals clogging up our hospitals and courthouses.

I'm talking about gang activity.

Immigrant gangs are already present in the Cardinal Valley area of Lexington. As their activities become more widespread, "guest workers" who are only trying to better themselves and their families will get killed in the backlash.

For the safety of central Kentuckians, it is just about time to run off our local illegal immigrants.

Herald Leader's Back-To-School Tax

The editors of the Lexington Herald Leader are upset about taxes again.

This morning they -- predictably -- joined the Fayette County School District in complaining that property taxes aren't high enough to pay for school renovation.

Fayette County ranks 54th out of 176 school districts in the rate of property tax dedicated to schools.

Some of the schools schedulted (sic) for renovation were built early in the last century. None have been renovated in the last quarter-century.

Given that school financial accountability is so lacking in Kentucky, we should really look at spending first. And repealing the prevailing wage law in Kentucky would be a good second step.

Special Session Redux

Legislative leaders agree the special session will take about five days. Any guesses on when or if extra projects and domestic partner benefits get added to the call?

Macaca II For Giuliani

Rudy Giuliani says if he weren't running for president himself, he would support Sen. John McCain.

Bell County Says No To Casinos

Governor Fletcher's campaign sent out a release this afternoon touting Bell County Fiscal Court's resolution to reject casinos.

This is a good thing and other counties will surely follow suit.

Folks, this is your vote on casinos. And the people who are upset about this need to move fast to escape Steve Beshear's slavish devotion to out-of-state casino operators.

Maybe the Republican Party of Kentucky should send out doctored pictures of Steve Beshear's head pasted on top of Princess Leia's body when she was Jabba the Hutt's slave on Tatooine.